Question Summary:
Is it allowed to smoke and sell cigarettes, sell lottery tickets, take interest and do I give Zakat on my 401(k)?

Question Detail:

I live in USA. I have few questions. If you can provide answers with Quran and Hadees reference, i would greatly appreciate it.1. Is having lottery in Gas Station and earning commission on selling those lottery tickets haram?2. Is smoking and selling cigarettes allowed?3. I have 401k through my Job where i contribute certain % which is matched by my employer. 401k money can be withdrawn only at retirement age or  if you face hardship, otherwise there is penalty for withdrawing early. Will Zakat be due on my 401k balance every year?4. Are we allowed to take interest from saving account in USA. I have heard that it's allowed since we are in non-islamic country. Can you please provide any reference if this is allowed.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
1. Yes, selling lottery tickets is haram. For details please see Fatwa # 17979: http://askimam.org/public/question_detail/17979
2. Smoking and selling cigarettes while permissible is not free from harm and therefore makruh. For details please see Fatwa #19710 and #28862: http://askimam.org/public/question_detail/19710  http://askimam.org/public/question_detail/28862
3. Yes, Zakat is due on your 401(k) plan. For details on how to calculate the Zakat due, please see Fatwa #29670: http://askimam.org/public/question_detail/29670
4. No, it is not permissible to take interest from your savings account. Money should instead be kept in an interest-free checking account. Any interest received until now should be given to the poor who are eligible to receive Zakat without any intention of reward. [i]
Sohail ibn Arif,
Student Darul Iftaa
Chicago, USA
Checked and Approved by,
Mufti Ebrahim Desai.
 
فتاوى عثماني ٣/ ٢٦٧ – ٢٦٩ و ٢٧٢ - ٢٧٤ مكتبة معارف القران كراتشي [i]